Nature and scope of Cost Accounting

The scope of cost accounting is very wide.There are lots of techniques, tools ,procedures, processes,programs are used in cost accounting for calculating cost and its control. But basically we divide its scope within three major parts

1. Cost Ascertainment :- In this region of cost accounting cost accounting collects products material, labour and overhead cost and try to calculate total and per unit cost of a product.This total cost calculation will be based on historical or standard or estimated basis. After this cost accountant will use any method of Costing like specific order costing ,operation costing and direct costing technique .This techniques and methods may be used for calculating different nature products in same organisation
2. Cost records:- In this part of cost accounting ,cost accountant maintain cost books ,vouchers, ledgers reports and other cost related documents for future comparison and reference.It will also be under the scope of cost accounting
3. Cost control:-This is the end boundary of cost accounting scope. In this division, cost accountant used different techniques and methods for controlling the cost. Save 1 Rupee the cost of product means we have earned 1 Rupee in the production of goods. So, cost accountant uses  budgetory control,standard costing ,break even point analysis and many other techniques for controlling the cost.

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